Digital Realty founder buys Ericsson data centre
Wed 10 Jan 2018
The private investment firm that founded data centre giant Digital Realty has purchased Ericsson’s Quebec data centre.
Investors at GI Partners, a San Francisco based private investment firm that deals primarily in real estate, recently completed the acquisition of the facility in the Montreal suburb of Vaudreuil-Dorion.
The 215,000 sq. foot site originally opened in December 2016, but with Ericsson facing financial difficulties following four consecutive quarters of losses, the site was set to close. As well as planning to close this facility, the Swedish telco is consolidating two other data centres with the intention of saving $46 million (approx. £34 million).
However, GI Partners was able to buy the property directly from Ericsson. Part of the site, which has space for expansion, will be leased back to the sellers for the development of its cloud projects.
Built with flexible infrastructure and meeting N+1 redundancy requirements for critical systems, the facility has 11MW of redundant power, and is ready to be leased immediately. According to GI, the site could ultimately expand to 50MW of power.
Mike Armstrong, director and co-head of acquisitions at GI Partners, said: “Montreal is a dynamic data centre market, due to its access to cost-effective hydroelectric power that is attractive for scale and hyperscale deployments.
“The property is a world class highly secure data centre that will provide users with the opportunity to establish in market immediately with significant expansion potential under the same roof.”
GI Partners, which has investments in real estate ranging from commercial real estate to nursing homes, founded Digital Realty in 2004. It did so by taking a portfolio of 21 existing, failing data centres and packaging them into a new company.
Having bought these sites at a discount price, GI worked to bring in new firms to the data centres, after which point the company went public. Digital Realty is now one of the largest data centre real estate investment trusts in the world, with 132 sites and a total of 26.1 million sq. foot of rentable space.